The Alberta Securities Commission (ASC) has received $20,000 from Neil Andrew McDonald to settle allegations of perpetrating a fraud and making false or misleading statements to investors.

In the settlement agreement, McDonald admitted that between February and April 2009, he raised $439,000 by telling seven Alberta investors that he would purchase guaranteed investment certificates, when in fact he used $260,000 of the investors’ funds to buy securities in another company in his own name and that of his business partner.

McDonald deposited the balance of the investors’ money into a numbered company owned and controlled by him. McDonald has repaid the investors their money on his own initiative, the ASC says.

Under the settlement agreement, McDonald paid $15,000 to settle the allegations and $5,000 towards costs. He also agreed, for a period of 15 years, to refrain from:

> trading in or purchasing securities or exchange contracts;
> using any Alberta securities laws exemptions;
> acting as a director or officer of any public company;
> becoming or acting as a registrant, investment fund manager or promoter;
> advising in securities or exchange contracts; and
> acting in a management or consultative capacity in connection with activities in the securities market.

IE